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I'm confused. Vehicle depreciation Section 179 #4026304
11/27/23 02:29 PM
11/27/23 02:29 PM
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
straycat Offline OP
Old Mossy Horns
straycat  Offline OP
Old Mossy Horns
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
Truck over 6,000 pounds but with a short bed less than 6 feet. Business use 100%.
How does Section 179 work with short bed?
How does Bonus Depreciation option work with short bed?

I'm buying a new truck through my business and will put into service before 12/31/23.
Truck I want that's not a special order...can't find it in a 6 foot bed to qualify for 100% Depreciation under Section 179 this year. Bonus depreciation...man it gets confusing.
So how does this work with a short bed?

Need advice from the accountant and business owners who understand this well.

Thanks in advance


"The grass withers, the flower fades, But the word of our God stands forever." Isaiah 40:8

"Neither the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt.� Samuel Adams
Re: I'm confused. Vehicle depreciation Section 179 [Re: straycat] #4027170
11/28/23 06:42 PM
11/28/23 06:42 PM
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
straycat Offline OP
Old Mossy Horns
straycat  Offline OP
Old Mossy Horns
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
Over 24 hours without any answer makes me feel better about not understanding the stupid IRS code.
Fair or Flat Tax please!


"The grass withers, the flower fades, But the word of our God stands forever." Isaiah 40:8

"Neither the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt.� Samuel Adams
Re: I'm confused. Vehicle depreciation Section 179 [Re: straycat] #4027195
11/28/23 07:06 PM
11/28/23 07:06 PM
Joined: Jul 2020
Posts: 8,429
Chelsea
L
Lockjaw Offline
14 point
Lockjaw  Offline
14 point
L
Joined: Jul 2020
Posts: 8,429
Chelsea
The IRS code is a perfect example of government at its finest.

Re: I'm confused. Vehicle depreciation Section 179 [Re: straycat] #4027200
11/28/23 07:11 PM
11/28/23 07:11 PM
Joined: Sep 2001
Posts: 939
AL
J
jhardy Offline
6 point
jhardy  Offline
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J
Joined: Sep 2001
Posts: 939
AL
The CPAs aren’t answering because when we do someone tells us how wrong we are because they do their own tax return. Sorry, I have just learned it’s better to not comment on this forum about taxes.

Re: I'm confused. Vehicle depreciation Section 179 [Re: jhardy] #4027213
11/28/23 07:27 PM
11/28/23 07:27 PM
Joined: Feb 2007
Posts: 18,939
colbert county
cartervj Offline
Old Mossy Horns
cartervj  Offline
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colbert county
Originally Posted by jhardy
The CPAs aren’t answering because when we do someone tells us how wrong we are because they do their own tax return. Sorry, I have just learned it’s better to not comment on this forum about taxes.



Straycats is a good dude. Just pm him if you haven’t already.


“Socialism only works in two places: Heaven where they don't need it and hell where they already have it.” ― Ronald Reagan
Re: I'm confused. Vehicle depreciation Section 179 [Re: straycat] #4027236
11/28/23 07:56 PM
11/28/23 07:56 PM
Joined: Dec 2004
Posts: 18,845
.
F
ford150man Offline
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ford150man  Offline
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F
Joined: Dec 2004
Posts: 18,845
.
You lost me after buying a new truck. grin


If voting made any difference, they wouldn’t let us do it.-Mark Twain
Re: I'm confused. Vehicle depreciation Section 179 [Re: straycat] #4027245
11/28/23 08:09 PM
11/28/23 08:09 PM
Joined: Oct 2014
Posts: 409
Helena
N
NoHuntin Offline
4 point
NoHuntin  Offline
4 point
N
Joined: Oct 2014
Posts: 409
Helena
I don't if even think it has to have a bed, as a 6000+ suv

Re: I'm confused. Vehicle depreciation Section 179 [Re: straycat] #4027258
11/28/23 08:29 PM
11/28/23 08:29 PM
Joined: Jan 2014
Posts: 10,416
Scottsboro, Al
J
jbatey1 Offline
Lucky Bastage
jbatey1  Offline
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J
Joined: Jan 2014
Posts: 10,416
Scottsboro, Al
As far as I know there was nothing to do with the length of the bed. We bought 2 LTZ’s last year and an E350 last year and bonuses all of them at 100 for the past taxes.

I was thinking last year was the final year of 100% though and that this year it was set at max of 80%. I could be wrong though.


The fool tells me his reasons; the wise man persuades me with my own.
Re: I'm confused. Vehicle depreciation Section 179 [Re: jbatey1] #4027295
11/28/23 09:08 PM
11/28/23 09:08 PM
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
straycat Offline OP
Old Mossy Horns
straycat  Offline OP
Old Mossy Horns
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
Originally Posted by jbatey1
As far as I know there was nothing to do with the length of the bed. We bought 2 LTZ’s last year and an E350 last year and bonuses all of them at 100 for the past taxes.

I was thinking last year was the final year of 100% though and that this year it was set at max of 80%. I could be wrong though.


My understanding is:


Section 179 is 100% if truck is over 6,000 pounds and has a minimum 6ft. bed.

Bonus depreciation is a separate thing. For 2023 it's 80%. I just don't know if the Bonus depreciation option has a bed length requirement.

As it sits today, I could take up to $25,000 under Section 179 for 2023 because bed length disqualifies for 100% AND take 80% of the balance under Bonus depreciation rules...if Bonus rules allow the 5.6 ft bed to qualify.

I do use a CPA, there is a reason I am also asking here, but was hoping someone would have some personal experience purchasing for a business would share. Hopefully the Bonus route will work out.


Last edited by straycat; 11/28/23 09:13 PM.

"The grass withers, the flower fades, But the word of our God stands forever." Isaiah 40:8

"Neither the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt.� Samuel Adams
Re: I'm confused. Vehicle depreciation Section 179 [Re: jhardy] #4027299
11/28/23 09:12 PM
11/28/23 09:12 PM
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
straycat Offline OP
Old Mossy Horns
straycat  Offline OP
Old Mossy Horns
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
Originally Posted by jhardy
The CPAs aren’t answering because when we do someone tells us how wrong we are because they do their own tax return. Sorry, I have just learned it’s better to not comment on this forum about taxes.


Understood. It's Aldeer. 🤣


"The grass withers, the flower fades, But the word of our God stands forever." Isaiah 40:8

"Neither the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt.� Samuel Adams
Re: I'm confused. Vehicle depreciation Section 179 [Re: straycat] #4027364
11/28/23 10:51 PM
11/28/23 10:51 PM
Joined: Jan 2014
Posts: 10,416
Scottsboro, Al
J
jbatey1 Offline
Lucky Bastage
jbatey1  Offline
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J
Joined: Jan 2014
Posts: 10,416
Scottsboro, Al
Perhaps I used the term bonus loosely.

Last year I bought 2 LTZ Silverados. They have beds shorter than 6ft. They were both at100 percent in year one. The E350 was also 100 percent in year one.

If nothing has changed for the criteria allowed, you should be able to do what you want if the vehicle is over 6k, regardless of bed length.


The fool tells me his reasons; the wise man persuades me with my own.
Re: I'm confused. Vehicle depreciation Section 179 [Re: jbatey1] #4027670
11/29/23 12:13 PM
11/29/23 12:13 PM
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
straycat Offline OP
Old Mossy Horns
straycat  Offline OP
Old Mossy Horns
Joined: Jul 2005
Posts: 19,088
Chelsea, AL
Originally Posted by jbatey1
Perhaps I used the term bonus loosely.

Last year I bought 2 LTZ Silverados. They have beds shorter than 6ft. They were both at100 percent in year one. The E350 was also 100 percent in year one.

If nothing has changed for the criteria allowed, you should be able to do what you want if the vehicle is over 6k, regardless of bed length.


For 2022 you are right, 100% with bonus deprecation option. Changed to 80% for 2023. Will be 60% in 2024 then supposedly phased out all together. Thanks Sleepy Joe.
I've gone down the rabbit trail and bed length doesn't matter with bonus depreciation option. It does with Section 179 if you want full 100% under that way.
The rules are all ridiculous and confusing....IRS, government at its worst. Well unless you count the CDC, EPA, FDA, NIH, Dept of Education.............


"The grass withers, the flower fades, But the word of our God stands forever." Isaiah 40:8

"Neither the wisest constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt.� Samuel Adams

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